GREATER MANCHESTER — The UK government has established a new High Street Organised Crime Unit, chaired by security minister Dan Jarvis, to coordinate a nationwide effort against retail outlets suspected of laundering £1bn of criminal money through vape stores, barbers, mini-marts and sweet shops. The unit will bring together government departments, policing partners and trading standards, funded from a £30m pot set aside by chancellor Rachel Reeves in last November's budget.

A £20m National Crime Agency cell will run and coordinate investigations and raids into UK businesses suspected of acting as fronts for gangsters. The NCA and police forces in Greater Manchester, the West Midlands, Kent and Essex will recruit 75 officers to boost the effort. Trading standards departments will receive an extra £6m to bolster the response to sham businesses in at-risk local authorities.

"Criminal gangs have exploited our high streets to launder their dirty money and undercut honest businesses," said Shabana Mahmood, home secretary. "We are hitting back with a nationwide crackdown to shut these fronts down, seize dirty cash and drive organised crime off our high streets and put bosses behind bars," Mahmood said.

Coordinated raids of illegal retail outlets have been launched by the NCA under Operation Machinize 2, which targeted cash intensive businesses in the grey economy. The agency helped plan raids of more than 2,700 premises, leading to 924 arrests. Police seized more than £10.7m of suspected illegal proceeds, 111,000 illegal vapes, 70kg of cannabis and 4.5m illegal cigarettes.

The NCA estimates at least £12bn of criminal cash is generated in the UK each year, with £1bn laundered through high street businesses such as mini-marts, barber shops, vape stores and sweet shops. Some high street businesses are connected to the sale of fake goods, tax evasion, illegal working and illegal drug supply. As many as half of convenience stores and vape retailers in some areas are estimated to have links with organised crime.

Labour vowed to crack down on retail outlets such as US candy shops in its general election manifesto, following investigations into tax evasion and the sale of counterfeit goods. Research released in January showed that people feel high streets have declined more than any other part of their local area. Improving shopping precincts was the third most important local issue for voters, behind good healthcare and reducing crime, according to polling conducted by YouGov.